In Video: NPR Exec Slams Tea Party, Questions Need For Federal Funds

(10 a.m. ET, March 9: We've added to this story many times, as you'll see below — including with the news that NPR CEO and President Vivian Schiller has resigned. This post starts with our original report, and then is followed by the updates we did along the way.)

— "I think what we all believe is if we don't have Muslim voices in our schools, on the air ... it's the same thing we faced as a nation when we didn't have female voices." In the heavily edited tape, that comment followed Schiller being told by one of the men that their organization "was originally founded by a few members of the Muslim Brotherhood in America." There's no sign in the edited tape that Schiller reacted in any way after being told of the group's alleged connection to an Islamic group that appeared to be connected with Egypt's Muslim Brotherhood.

— That NPR "would be better off in the long run without federal funding," a position in direct conflict with the organization's official position.

Schiller is also heard laughing when one of the men jokes that NPR should be known as "National Palestinian Radio."

NPR, as you'll see below, has called Schiller's comments appalling.

The video comes from Project Veritas, and is another in political activist James O'Keefe's undercover exposes (he most prominently took on ACORN — the Association of Community Organizations for Reform Now). In the video, Schiller and NPR institutional giving director Betsy Liley are at lunch in Washington with two Project Veritas "investigative reporters" identified as Shaughn Adeleye and Simon Templar, who posed as "Ibrahim Kasaam and Amir Malik." They were allegedly interested in having their organization donate $5 million to NPR. O'Keefe's organization says the recording was made on Feb. 22.

Schiller (no relation to NPR CEO Vivian Schiller), announced last week that he is leaving NPR to become director of the Aspen Institute Arts Program. In his position at NPR, Schiller has not been involved in editorial decisions.

Dana Davis Rehm, NPR's senior vice president of marketing, communications and external relations, has released this statement:

"The fraudulent organization represented in this video repeatedly pressed us to accept a $5 million check, with no strings attached, which we repeatedly refused to accept.

"We are appalled by the comments made by Ron Schiller in the video, which are contrary to what NPR stands for.

"Mr. Schiller announced last week that he is leaving NPR for another job."

'Project Veritas'YouTube

Our colleague David Folkenflik is pursuing comments from Schiller, O'Keefe and other parties to the story. We will be updating as the story develops.

"Ron Schiller tendered his resignation on January 24, well before the lunch meeting occurred. His resignation was announced last week. He was intending to stay with NPR through May 5. We have mutually agreed that Ron is leaving NPR effective today."

Ron Schiller also issued this apology:

"While the meeting I participated in turned out to be a ruse, I made statements during the course of the meeting that are counter to NPR's values and also not reflective of my own beliefs. I offer my sincere apology to those I offended. I resigned from NPR, previously effective May 6th, to accept another job. In an effort to put this unfortunate matter behind us, NPR and I have agreed that my resignation is effective today."

In a new statement, NPR CEO Vivian Schiller said her chief fundraiser's remarks in the video were "deeply distressing to reporters, editors and others who bring fairness, civility and respect for a wide variety of viewpoints to their work every day."

"In no way shape or form do they reflect what NPR does and who NPR is," NPR's chief tells Folkenflik in his report for today's All Things Considered. "I find it affront to the journalists that we have around the world — including in hot spots — in harm's way. This is NOT what NPR stands for."

Update at 5:35 p.m. ET. More on Ron Schiller's status:

The official word from NPR spokeswoman Dana Davis Rehm is that he's been "placed on administrative leave." Here's a new statement from Rehm:

"The comments contained in the video released today are contrary to everything we stand for, and we completely disavow the views expressed. NPR is fair and open minded about the people we cover. Our reporting reflects those values every single day — in the civility of our programming, the range of opinions we reflect and the diversity of stories we tell.

"The assertion that NPR and public radio stations would be better off without federal funding does not reflect reality. The elimination of federal funding would significantly damage public broadcasting as a whole.

"Prior to the lunch meeting presented in the edited video, Ron Schiller had informed NPR that he was resigning from his position to take a new job. His resignation was announced publicly last week, and he was expected to depart in May. While we review this situation, he has been placed on administrative leave."

"Just last Thursday Ron Schiller announced he would be leaving NPR to take a position at the Aspen Institute in Colorado. He has been commuting from his home in Aspen, at his own expense, during his 18 months on the job. Today, his departure was made effective immediately."

Update at 5:05 p.m. ET: NPR's David Folkenflik, who's finishing up a report about this for All Things Considered, reports that there were clear signs that the Muslim Education Action Center Trust was not a long-standing organization — Internet records show the center's website was created in mid-January. The address for the organization? A UPS store.

CEO Vivian Schiller tells David that NPR became aware of those peculiarities, and that NPR was vetting the organization. And he has obtained e-mails (not from an official NPR source, but which have been verified by NPR) showing that the network last week asked the fictitious Ibrahim Kasaam for, among other things, verification that the Muslim Education Action Center was qualified as a 501(c)(3) charitable organization. It was not, of course.

Vivian Schiller also tells David that the men posing as representatives of the Muslim Education Action Center asked several times for someone from NPR to come to their offices so that a photograph could be taken as a donation check was handed over. That request was turned down because NPR was not close to being finished with its vetting of the organization, she says.

We'll have more from David's report, including what Vivian Schiller has to say about Ron Schiller's comments, shortly.

Update at 4:10 p.m. ET: NPR's Larry Abramson reports that "some members of Congress are revving up their campaign" to cut the federal funding that goes to NPR. He says that "House Majority Leader Eric Cantor (R-VA) said the video made it clear that taxpayer dollars should no longer go to NPR."

NPR receives about 2 percent of its budget each year from the federally funded Corporation for Public Broadcasting and federal agencies — but public radio stations that purchase NPR's programming receive more federal dollars and send some of that money back to NPR in fees. In fiscal 2008, for example, grants from the Corporation for Public Broadcasting accounted for about 10 percent of public radio stations' revenue. The stations got about 6 percent of their revenue from other federal, state and local government sources.

Update at 2:40 p.m. ET: Earlier, on first reference we called Ron Schiller the "then-senior vice president." To be more precise, we've changed it to "soon-to-be-departing." As we said earlier, he announced last week that he's leaving NPR (a decision that NPR says was not related to today's news).

"Republican Rep. Doug Lamborn is leading the GOP effort in the House to defund National Public Radio (and, in a separate bill, the Corporation for Public Broadcasting). I spoke with him a short time ago about the sting video ... 'I am amazed at the condescension and arrogance that we saw in the sting video," Lamborn told me. 'They seem to be viewing themselves as elites living in an ivory tower, and they are obviously out of touch with ordinary Americans.' "

Update at 11:35 a.m. ET. David Folkenflik has filed his first report on this for the NPR Newcast. His report was introduced with this lead-in:

"NPR's chief fundraising executive, Ron Schiller, was caught on tape criticizing conservatives and saying NPR would be better off without federal financial support. As NPR's David Folkenflik reports, his remarks were captured as part of a video sting at a time when NPR is under public assault."

Then David followed with this (and you can listen below):

"Today's tapes, produced by the conservative political activist James O'Keefe, show Schiller and NPR fundraiser Betsy Liley talking with two men over lunch in late February at an upscale Washington cafe.

"Schiller said the federal funding was vital for local member stations.

"The men present themselves as representing a Muslim organization and appear to be critical of what they said was Zionist influence in the media.

"NPR called Schiller's remarks appalling, but in a statement said, quote, 'The fraudulent organization represented in this video repeatedly pressed us to accept a $5 million check, with no strings attached, which we repeatedly refused to accept.'

"Ron Schiller announced just last week that he was leaving NPR after 18 months for a job with the Aspen Institute close to his Colorado home."